Contractors’ insurance is an important coverage to have if you are working as a contractor. If you don’t carry the appropriate type of insurance, they risk bankruptcy and having their business shut down. Learn about contractors’ insurance and why it’s critical for you to purchase.

Why you need it?

There are several reasons why you need contractors’ insurance coverage. First, you could be held personally liable for any injuries that occur to their employees or others while on their job site. If a construction worker is hurt in an accident and the employer did not have contractors’ liability insurance, the injured party may file suit against both parties. By carrying this type of contractors’ insurance, you are protecting themselves from being sued for injuries.

Secondly, you need contractors’ liability coverage to protect their business assets in case of theft or fire damage at the job site. While it is uncommon for a contractor’s office and equipment to be stolen while they’re working on a project, if this were to happen there would be a chance for your business to lose everything. For example, if you were on a job site and an electrical fire started that burned down the building containing your equipment along with any customer files or money, contractors’ insurance would help pay back those creditors who lost their investments in this project.

In addition to protecting yourself from lawsuits and loss of property at their job site, contractors’ insurance can also protect them from theft and damage at their office. For example, if a contractor’s office were broken into or vandalized contractors’ insurance would cover those damages as well.

What is contractors’ insurance?

Contractors’ insurance is a type of coverage that you need to have in case an accident or loss occurs. There are four types of contractors’ insurance:

general liability – protects the policyholder from accidents and injuries on their job site, including medical expenses resulting from these incidents

– equipment breakdown – covers losses due to theft, fire damage, or damage due to power surges

– contractors’ tools – covers all equipment used on the job site including hand and power tools, ladders, scaffolding, etc.

– umbrella insurance – acts as an extra layer of protection for you in case they are sued beyond what their general liability policy will cover. This type of contractor’s insurance is usually purchased in increments of $500,000.

What are the benefits of having the coverage?

Contractors’ insurance offers you many benefits. The most important benefit is that you are protected in case they get sued or their equipment gets damaged or stolen. By having contractors’ insurance, you can work without the worry of losing everything if something were to happen at their job site.

Another major benefit of carrying contractors’ insurance is that it helps you stay competitive in the industry. Since contractors’ insurance helps protect both you and their employees, those contractors who do not carry this type of coverage may be seen as a liability to clients. This could cause a contractor’s customer base to decrease over time which would put them at risk for going out of business.

Understanding contractors’ insurance can help you make the decision to purchase contractors’ insurance. If you know they are protected from lawsuits and property damage, this can put them at ease as they continue their workday after day.

How much does it cost to get insured?

Contractors’ insurance can vary in price depending on the you and their needs. For example, contractors with a lot of equipment or work vehicles will pay more than those who only have hand tools for their projects. While contractors may not be able to predict how much contractors’ insurance will cost them, they should always do research online and speak with contractors’ insurance agents to make sure you are getting the right coverage for their business.

You should also consider that contractors’ insurance does not need to be expensive if they choose a high deductible, which means they will have more of an initial outlay but lower monthly premiums.


If you want to discuss options for contractors’ insurance, please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:00 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!

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